STEEL NEWS REPORTS

CORPORATE NEWS

United States Steel Clarifies Comments Made by President ...Thu 8th Dec 2016 00:00 GMT Today United States Steel Corporation (NYSE: X) issued a statement regarding comments made yesterday by President and CEO Mario Longhi [see article]

Companhia Siderurgica's Prospects Strong: Should You ...Wed 7th Dec 2016 05:09 GMT We believe that Companhia Siderurgica Nacionals diversified business structure, with exposure in steel, iron ore mining, logistics, cement and energy industries will prove beneficial over the long run. In the third quarter, roughly 40.1% of the company [see article]

Mine Tales: Vekol Mine heavily prospected in early 1900sSun 4th Dec 2016 12:06 GMT Daggs acquired the mine then composed of six patented claims of which the Vekol being the greatest producer along with the Argosy, Lookout, Flat Iron the ore body at several hundred feet. High grade ore was stoped and transported to Casa Grande [see article]

Todays Stock Alert: Companhia Siderurgica Nacional (ADR) ...Fri 2nd Dec 2016 18:40 GMT Companhia Siderurgica Nacional, incorporated on April 9, 1941, operates throughout the entire steel production chain, from the mining of iron ore to the production and sale of a range of steel products, including coated galvanized flat steel and tinplate [see article]

Better Buy: Teck Resources Ltd. vs. Companhia Siderurgica ...Wed 30th Nov 2016 07:58 GMT A combination of higher prices for steel and iron ore (27% of revenues and 45% of adjusted EBITDA If you want to bet on Brazil, by all means look at Companhia Siderurgica Nacional. But if what you really want is a foreign-based company that has [see article]

Notes
Analyses above were last updated in January 2016. For further item-specific capital investment data see our steel capex database page.

EMPLOYMENT BENCHMARKS

Chart above shows year 2015 employment levels at 114 different steel firms around the world - companies that make flat, long and/or tubular carbon steel products.
An average steel producer with a production capacity of ~3 mt steel/year typically thus has ~4000 employees. If your steel company employs more than this, please call us - our technical experts can assist with steel plant productivity improvement.

To discuss the interpretation of this chart and/or further information (including employment benchmarks for specialty steel production) please email us at the address shown at the foot of the page.

INDUSTRY FORECASTS FOR YEARS 2016+

Table below shows global crude steel production volumes and capacity figures - as assessed by World Steel Association and by the OECD - and resulting calculation of steelmaking capacity utilisation. The overall picture for 2016 as compared to 2015 is that the global capacity surplus will get worse. Excess global capacity is likely to increase from ~749 to ~799 million tonnes and global stelemaking capacity utilisation will fall by ~1.6% in 2016.

In 2017 the global excess of world steel capacity is expected to be worse than in 2016, increasing to ~807 million tonnes.

Year

Productionmillion t

Capacitymillion t

CapacityUtilisation

2012

1560

2102

74.2%

2013

1650

2273

72.6%

2014

1670

2322

71.9%

2015

1622

2371

68.4%

2016

1608

2407

66.8%

2017

1615

2422

66.7%

Source: MCI analysis. Table last updated 24-Apr-15.

Graph below shows the relationship between steel prices and the global level of capacity utilisation - and indicates (both for HRC and for rebar) that prices fall ~$27/tonne per 1% drop in capacity utilisation.

On the basis of the anticipated fall in 2016 of world capacity utilisation from 2015 levels of approx 1.6% (see table), MCI's consultants consider that world steel prices in 2016 will be ~$43/tonne below 2015 prices. For other products and / or for steel price forecasts through to 2020, please contact us.